Governor Announces Virginia Revenue Surplus

Posted: July 15, 2010 at 1:02 am, Last Updated: July 14, 2010 at 2:49 pm

Gov. Bob McDonnell issued a news release on July 14 announcing that the Commonwealth of Virginia has posted a preliminary revenue surplus for the 2010 fiscal year, which ended on June 30.

The governor said, “After some necessary adjustments and disbursements that still must take place, I believe the official surplus at the conclusion of FY 2010 will be at least $220 million.

“The majority of the surplus is already dedicated within the budget to a number of areas. One of those is to fund a one-time non-recurring 3 percent December bonus for Virginia’s state employees. Our state employees have worked without any increase in pay for nearly four years.

“This session of the General Assembly, I proposed a plan supported by Democrats and Republicans to incentivize state employees to save state dollars at the fiscal year-end, and receive an incremental bonus of up to 3 percent if a surplus was achieved.

“For too long the unfortunate standard procedure in state government has been for agencies to spend down all appropriated funds to zero prior to the ending of the fiscal year. We successfully changed that model by implementing private sector principles of rewarding fiscal discipline and sound management of scarce resources.

“State employees were successful in identifying more than $28 million in savings, and I thank them for their efforts and their dedication to our commonwealth.”

The final surplus figure will be announced in August when all year-end adjustments are made and the governor appears before the joint money committees of the General Assembly.

The governor said other areas that will likely receive surplus money are local school districts; Virginia’s Water Quality Fund, which supports cleaning up the Chesapeake Bay; and the Transportation Trust Fund.

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